Safara Secures Undisclosed Funding Round Led by Sequoia and Defy.vc, Acquires Skipper to Bolster Independent Hotel Technology

Doug Schuessler, a seasoned entrepreneur whose passion for building ventures has been a driving force since his formative years, has once again taken the helm of a promising startup. This time, his focus is firmly set on revolutionizing the hospitality technology sector with Safara, a comprehensive booking platform and software suite designed to empower independent hotels. The company announced today an undisclosed funding round led by prominent venture capital firms Sequoia and Defy.vc, coupled with the strategic acquisition of Skipper, a specialized online booking engine for independent properties. This infusion of capital brings Safara’s total funding to $14 million to date, signaling a significant endorsement of its vision and market potential.

Schuessler’s entrepreneurial journey is marked by a relentless pursuit of innovation and a deep understanding of high-growth environments. His early career saw him launch two startups before making a deliberate move to San Francisco, a global epicenter of technological advancement. It was there that he joined Square, a fintech powerhouse, to gain firsthand experience within what he described as a "real rocket shop." This immersive experience honed his business acumen and strategic thinking. He later transitioned to the role of chief revenue officer at Resy, a leading restaurant booking platform, where he played a pivotal role in its growth and market penetration.

The pivotal moment that steered Schuessler towards the hospitality industry came after Resy’s acquisition by American Express. This experience provided him with a unique vantage point on the dynamics of consumer-facing platforms and the underlying technology that supports them. "After Resy sold to AMEX, I started studying the hospitality technology industry more and found myself hooked on hotels," Schuessler recounted. He observed a critical need within the independent hotel sector, a segment he felt was underserved by existing technological solutions.

"Independent hotels really need the help," Schuessler stated emphatically in an interview with TechCrunch. He elaborated on the historical landscape of the hotel industry, noting that decades ago, a significant majority of hotels were independently owned. However, the relentless expansion of hotel chains has led to the consolidation of many smaller, independent properties. This trend has intensified competition for the remaining independent hotels, forcing them to contend with the vast resources and marketing power of their larger counterparts.

Recognizing this significant market gap and the inherent challenges faced by independent hoteliers, Schuessler, alongside his co-founder Cody Rose—a fellow Resy alumnus—embarked on the creation of Safara. The platform’s core mission is to democratize access to global hotel inventory, allowing customers to book nearly any hotel worldwide, whether it’s a part of a major chain or a unique independent establishment. This ambitious scope aims to provide a unified and seamless booking experience for travelers, while simultaneously offering independent hotels a powerful new channel to reach a wider audience.

The Safara platform is meticulously curated, drawing upon a sophisticated blend of consumer data analytics and valuable community-sourced recommendations. This dual approach ensures that the listed properties are not only popular and well-regarded but also align with the diverse preferences of modern travelers. Complementing its extensive booking capabilities, Safara offers a compelling rewards program that incentivizes users by providing cash back on bookings, which can then be applied towards future travel. This not only encourages repeat business but also fosters a loyal user base.

A key differentiator for Safara, particularly in light of its acquisition of Skipper, lies in its commitment to supporting independent hotels. Independent properties utilizing Skipper’s technology can integrate with Safara commission-free. This direct integration offers a significant advantage, effectively creating "another direct channel alongside their website," as Schuessler explained. This symbiotic relationship allows independent hotels to leverage Safara’s reach without incurring prohibitive fees, thereby maximizing their revenue and operational efficiency.

Schuessler further elaborated on the platform’s innovative approach to guest experience: "We then connect these two products to elevate the guest experience by enabling direct web guests who book directly on the hotel’s site to manage that reservation in the Safara app." This vision transcends a mere booking engine; it aims to create a holistic ecosystem where both direct bookings and platform bookings are seamlessly managed and enhanced through the Safara app, offering unparalleled convenience and control to the guest.

The recent funding round, led by the esteemed venture capital firms Sequoia and Defy.vc, underscores the significant investor confidence in Safara’s disruptive potential. Sequoia, known for its early-stage investments in industry-defining companies, and Defy.vc, with its focus on disruptive technology, bring not only capital but also invaluable strategic guidance and a network of expertise to Safara’s growth trajectory. The acquisition of Skipper, a company with a strong track record in serving independent hotels, is a strategic move that significantly expands Safara’s technological capabilities and market reach. Skipper’s existing customer base and booking engine infrastructure are expected to accelerate Safara’s mission to provide comprehensive solutions for independent hoteliers.

The integration of Safara and Skipper was facilitated by a mutual investor who recognized the shared vision and complementary strengths of both companies. Schuessler acknowledged that initial discussions about a potential collaboration took place earlier in the year, but the timing and alignment of strategic goals eventually converged. "We actually made a pass at the deal earlier in the year," Schuessler revealed, "but the stars eventually aligned. Both companies have a much better chance at achieving the shared vision together than they do apart." This sentiment highlights the synergistic potential of the merger, promising a more robust and unified offering for the hospitality market.

Safara’s business model is designed to stand apart from its competitors by offering a dual-pronged approach: robust software solutions for hotels and a consumer-centric product that enhances the travel experience. This holistic strategy aims to address the needs of both sides of the hospitality equation, creating a more efficient and rewarding ecosystem for all stakeholders.

Looking ahead, Schuessler anticipates that the true transformative power of Safara will be unleashed in 2025, as the company deepens the integration between its hotel-facing and consumer-facing products. "The magic is going to come in 2025 when we connect these two products more deeply to create new experiences for both hotels and guests," stated Schuessler, who helms the company as CEO. This forward-looking perspective suggests a roadmap focused on innovation and the development of novel features that will redefine guest engagement and hotel operations.

Schuessler’s ability to attract top-tier investors is a testament to his leadership and the compelling nature of Safara’s mission. He recounted the process of securing funding, emphasizing the importance of warm introductions. Alfred Lin, a partner at Sequoia, was an early proponent of Safara’s vision. While Lin initially passed on an earlier investment opportunity, he expressed a desire for a future partnership, a sentiment that Schuessler, though initially skeptical, found to be prophetic. This established a foundational relationship that ultimately led to Sequoia’s leadership in the current funding round.

His introduction to Brian Rothenberg, a partner at Defy.vc, through the AngelTrack network, proved to be another significant connection. Schuessler described an immediate rapport with Rothenberg, highlighting his unwavering support and shared perspective on the industry. "He is extremely supportive through good and bad and we tend to see the world through a very similar lens," Schuessler remarked, underscoring the value of aligned vision and mutual trust in investor-founder relationships.

The substantial capital raised will be strategically deployed to accelerate Safara’s product development initiatives and expand its footprint within the hotel sector. The company’s overarching objective for 2025 and beyond is to equip independent hotels with technological capabilities and network advantages that are comparable to those enjoyed by chain hotels. "Our focus of 2025 and beyond is really to empower independent hotels with the same technology and network advantages as chain hotels," Schuessler asserted.

Schuessler envisions a future where Safara not only contributes to the success of independent hotels but also unlocks entirely new and currently unimaginable guest experiences. "If we get this right, not only do we help these hotels succeed, but the types of experiences that will unlock for guests are things that frankly don’t exist right now," he stated with conviction. This ambitious outlook underscores Safara’s commitment to pushing the boundaries of what’s possible in the hospitality industry. The company’s ultimate aspiration is clear: "And if we accomplish both of those things, the sky is the limit for Safara as a company." This bold statement reflects a deep-seated belief in Safara’s potential to become a dominant force in hospitality technology, driven by its dedication to empowering independent hotels and enriching the travel experience for all.